Osaka City Government
in Japan






Guide to Osaka Business Establishment Promotion Subsidy
for Priority Industries(2007)

Osaka City Government offers subsidies of up to 10 million yen to cover a portion of building rental costs for companies in priority industrial fields (see next page) establishing a new business presence in Osaka City, in order to reduce the initial investment required to establish such a presence.

  Overview of System

  Basic Subsidy Special Measures for Establishment of a Large-Scale Business Presence
Businesses to be Subsidized

Must fulfill all the requirements for businesses to be subsidized (see next page)

  1. Japanese or overseas companies establishing a new business presence in Osaka City
  2. Business premises having a floor area of at least 50sq. meters, or with at least five employees.Etc.

In addition to the requirements for businesses to be subsidized (see next page), Business premises having a floor area of at least 300sq. meters, or with at least 30 employees.
Amount of Subsidy

Up to three (3) million yen per company.

Up to ten (10) million yen per company.
Applicable Expenses

Building rental costs
(excluding shared service charges (kyoeki-hi), rental deposit (shiki-kin), security deposit (hosho-kin), and: national and local consumption taxes. Amounts shall be rounded down to the nearest 1000 yen.)
Subsidy Period

1. Three months or less of the date of establishment of a new business presence.
2. In the event that the date of establishment of the business presence is not the first day of the month, three months or less of the month following the date of establishment.
* Should a rent-free period be applicable, the period of eligibility for the subsidy may be less than three months.

From Sunday, April 1, 2007 to the first day of the subsidy period (for businesses establishing a new presence between Friday, March 2, 2007 and Saturday, March 1, 2008).

*Applications cannot be accepted on Saturdays, Sundays, national holidays, and from December 29 to January 3.

  Contact Organization (Inquiries, Prior Consultations, Application for Subsidy, etc.)

IBPC Osaka Investment Promotion Center
Osaka WTC Bldg. 50th Floor, 1-14-16, Nanko-kita, Suminoe-ku,
Osaka 559-0034 JAPAN
(3 minutes walk from Trade Center-mae Station of OTS Technoport Line)
Tel: +81-6-6615-7000 Fax: +81-6-6616-4130

E-mail: ipc@ibpcosaka.or.jp
http://www.ibpcosaka.or.jp

* Application forms and other documents can be downloaded here.

 
  Eligibility for Subsidy

Companies establishing a new business presence within Osaka City between March 2, 2007 and March 1, 2008, provided that they meet all of the following conditions.

  1. The content of the business presence to be established (*1) and the business plan shall contribute to the vitalization of Osaka's economy by expanding opportunities for dealings with businesses in the city as well as fostering and developing new industries and creating employment opportunities.
  2. The company is registered as a corporation, much of its turnover is related to a priority industrial field (*2), and it has been in business for at least a year in principle at the time of establishing its presence in Osaka. (*3)
  3. The company's headquarters is located outside Osaka City and the company has not previously possessed a business establishment in the city. (*4)
  4. The company has a good business record and an appropriate business plan for the period following the establishment of its presence.
  5. The company possesses proper authorization to occupy the business premises to be subsidized (*5), and has completed the necessary registrations and obtained any authorizations required.
  6. The floor area of the business premises to be subsidized must exceed 50sq. meters, and at least five members of staff must be employed.
  7. The rental contract for the business premises to be subsidized must permit continued long-term occupation. (*6)
  8. The company is not moving into public facilities, or incubation facilities for new businesses.
  9. The company is not receiving other subsidies offered by Osaka City Government to companies moving in.
  10. The company is not applying concurrently for other subsidies offered by Osaka City Government to companies establishing a new business presence.
  11. The company is not a business authorized to establish educational institutions in Special Zones for Structural Reform specified by Osaka City Government.
  12. There are no other circumstances that are recognized as inappropriate by the Mayor of Osaka.

Notes:

*1. "Establishment of a business presence" refers to the opening of new business premises and the commencement of business operations, as the result of relocation from outside Osaka City, the establishment of new business premises, the establishment of a new Japanese corporation, or other means.
*2. "Priority industrial fields" refers to industries in fields approved by the Mayor of Osaka according to those set out by Osaka City Government: medical and welfare, lifestyle and culture, information and telecommunications, environment, human resources, biotechnology and nanotechnology, and robot technology. (See next page)
*3. Should an overseas company establish a Japanese corporation or branch office in the process of establishing a new business presence in Osaka, in principle the business results of the company providing the main source of investment (this refers to companies providing at least one third of investment capital) shall be taken into account.
*4. This shall not apply in the event that a division of the headquarters is establishing the new business presence.
*5. "Business premises to be subsidized" refers to offices, factories, or other business space available to the company for conducting business in one or more of the priority industrial fields approved by the Mayor of Osaka. (See next page.)
*6. The details of the rental contract shall state that the business premises to be subsidized may be used continuously for at least five years. Contracts for periods of less than one year, or of less than five years for which there are no stipulations for contract renewal, are excluded.

  Categories of Businesses to be Subsidized in Priority Industrial Fields (Examples)

Medical and welfare
  • Manufacture and wholesale of medical care, welfare, and health-related equipment, etc.
  • Manufacture and wholesale of pharmaceuticals, functional health foods, etc.
  • At-home medical care and nursing care services (at-home medical care services are limited to those covered by nursing care insurance)
Lifestyle and culture
  • Design (commercial, industrial, clothing, interior, etc.)
  • Fashion (including manufacture and wholesale of clothing, furniture, etc., but excluding industrial-use items and contract manufacturing of other companies' products)
  • Cultural facilities (galleries, museums, etc.)
Information and telecommunications
  • Manufacture and wholesale of IT devices, imaging devices, electronic components, etc.
  • Information processing and provision services, etc.
  • Communications, broadcasting, and information creation (film, video, etc.)
Environment
  • Manufacture and wholesale of environmental devices and equipment (pollution prevention, environmental preservation, recycling, equipment for environmental measurement and analysis, etc.)
  • Manufacture and wholesale of environmentally conscious products (Eco Mark products, etc.)
  • Manufacture and wholesale of energy-saving devices and equipment using new energy sources
Human resources
  • Universities and natural science research institutions
  • Private staff placement and supply of temporary labor
  • Specialist services for business premises (accountancy offices, design, product inspection, market research, etc.)
Biotechnology and nanotechnology
  • Manufacture and wholesale of products applying biotechnology or nanotechnology (pharmaceuticals, foods, fibers, raw materials for chemical products, sensors, precision instruments, etc.)
  • Testing and measurement services using biotechnology or nanotechnology
Robot technology
  • Manufacture and wholesale of robot products
  • Software for robot control or perception
  • All types of robot-mediated services (at-home nursing care, information provision, security systems, etc.)

Note: In the table above, "products" and "equipment" refer not only to completed items but also to semi-finished goods, components, ingredients and materials.


  Categories of Business Premises to be Subsidized (Examples)

Office

Offices, sales offices, training facilities
Commercial and distribution

Showrooms (business wholesale), warehouses, delivery centers
Manufacturing and research

Factories, workshops, natural science research institutions
Cultural

Galleries, museums
Information

TV studios, call centers, data centers, computing centers
Human resources

Universities, graduate schools

Notes:

  1. The business premises listed above are limited to those approved as facilities for business in the priority industrial fields stipulated above. This shall exclude facilities that have limitations set on their period of establishment, facilities for retail, food and drink, or lifestyle service business (referring to hairdressers, beauty salons, public baths, laundries, travel agencies and other consumer-oriented services), and facilities offered for residential use.
  2. Should the business premises listed above have attached labor union offices or employee welfare facilities (cafeterias, clinics, rest areas, car parks, etc. for the use of staff only), these shall be included in the business premises to be subsidized. This shall exclude cases in which they are the premises' main use, however.
  3. Cultural facilities shall be limited to those covered by applicable laws and regulations, and shall exclude so-called arbitrarily established facilities.

1. Prior Consultations Business to be Subsidized ? Osaka Investment Promotion Center
*Prior consultation is required before the date a contract is signed on the lease for the business premises to be subsidized.
2. Application for Subsidy Business to be Subsidized ? IBPC Osaka Investment Promotion Center a Osaka City Government
*Please complete the following documents during the application period.
  1. Subsidy application form (Form 1-1)
  2. Copy of statement of accounts from previous financial period (or the equivalent of the parent company for foreign companies establishing an initial presence in Japan) (*1)
  3. Copy of rental contract (*2)
  4. Documents showing an overview of the company, such as a pamphlet (*3)
*1. Copy of corporate tax return counterfoil (kessan shinkokusho hikae), balance sheet, profit-and-loss statement
*2. In the case of subletting, please attach a document to prove authorization to occupy the business premises.
*3. For overseas companies establishing an initial presence in Japan, documentation for the company providing the principle investment should also be submitted.
3. Screening Osaka City Government
*Osaka City Government will screen the application documents, and if necessary carry inspections or other investigations.
4. Decision on Subsidy/Notification Osaka City Government ? Business to be Subsidized
*When a business has been approved as eligible for subsidy, Osaka City Government will notify the business to be subsidized of this decision, along with conditions of payment within 30 days.
5. Report of Results Business to be Subsidized ? IBPC Osaka Investment Promotion Center ? Osaka City Government
*Within two weeks after the business operations period to be subsidized have been completed, the business to be subsidized is requested to submit the following documents.
  1. Report of business results (Form 8)
  2. Copy of notarized. articles of incorporation
  3. Certificate of seal impression (inkan shoumeisho) (issued within the previous six months)
  4. Certified copy of commercial registration including certification of entire history (issued within the previous six months)
  5. Copies of declaration forms for establishment of corporation, business premises, etc. (carrying the seal of Osaka City Government confirming their receipt)
    *Application forms can be downloaded from the Osaka City Finance Bureau Website(Japanese only)
  6. Documents to confirm the accrual of expenses eligible for the subsidy
    (a) Copies of receipts showing the payment of building rental costs during the subsidy period
    (b) Documents to confirm the sarary payment and employment insurance for employees during the subsidy period (should be omitted in case the number of employees, not the width of floor space, is applied as a application condition.)
  7. Copies of documents related to permits (for businesses that require a permit)
  8. Copies of reports to Bank of Japan regarding inward direct investment to Japan (for foreign companies establishing an initial presence in Japan only. These must carry the seal of the Bank of Japan confirming their receipt.)
6. Screening Osaka City Government
*Osaka City Government will screen the report and other documents, and if necessary carry out on-site inspections or other investigations.
7. Determination of Amount of Subsidy/Notification Osaka City Government ? Business to be Subsidized
*When the business results have been approved as eligible for subsidy, Osaka City Government will determine the amount of subsidy to be paid and notify the business to be subsidized. Depending on the situation of applications made within the financial year, the determination of the amount of subsidy may be made in around March of 2008.
8. Request for Payment of Subsidy Business to be Subsidized ? Osaka City Government *Following the notification described in (7) above, the business to be subsidized shall request payment of the subsidy from the Mayor of Osaka.
9. Payment of Subsidy Osaka City Government ? Business to be Subsidized
*Payment shall be made to a bank account.

Notes:

  1. Japanese translations must be attached to any of the documents to be submitted that are written in a language other than Japanese.
  2. Should the business to be subsidized be unable to maintain its presence, the decision to grant a subsidy may be reversed, and the return of subsidies already paid out together with an additional charge may be requested.
  3. Companies granted a subsidy may be required to participate in surveys or PR activities carried out for the purpose of attracting more companies to the city.
  4. Osaka City Government will make a decision on the amount of subsidy on the basis of an examination of the information provided in the application. The amount may be reduced in accordance with budgetary limitations.